Award-winning hotel and lifestyle brand, citizenM, has secured a dual currency €243.3M and £201.7M Sustainability Linked Loan (SLL) facilitated by HSBC UK and HSBC Continental Europe, ABN AMRO Bank N.V. and Aareal Bank.
By refinancing existing debt as a SLL, citizenM has tied its funding to specific Environmental, Social and Governance (ESG) targets, which include reducing operating CO2 emissions and improving existing green building certifications of its European-owned hotel assets. The new deal underlines the company’s commitment to reducing its environmental impact, whilst also providing funding that will help drive continued sustainable growth. Its completion makes citizenM one of the first European hospitality businesses to adopt the SLL funding structure.
citizenM operates 31 hotels worldwide across 18 cities and 9 countries, with a further 14 in development. The company has a firm commitment to sustainability targets and continued improvement to its existing green building certifications.
Klaas van Lookeren Campagne, Chief Executive Officer at citizenM, said: “At citizenM, we take sustainability seriously. We seek to build and operate hotels that minimise our impact on the environment, and it is important to us that our ongoing commitment to sustainability is reflected in every facet of our business. For this reason, we are immensely proud to have secured sustainability-linked funding, particularly given the complexity of the transaction, completed by a diverse lender group across Europe.”